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The Ghana Hoteliers Association has announced plans to address threats from several hotel operators considering legal action against the Ministry of Youth and Sports and the Local Organising Committee (LOC).
This is in response to the non-payment of 80 percent of the money owed for hosting guests during the 13th African Games held in Accra.
Although only 20 percent of the agreed-upon sum has been received, hotel operators claim their persistent attempts to obtain the remaining balance from the Ministry have been unproductive.
Dr. Edward Ackah-Nyameke, President of the Hoteliers Association, voiced his concerns about the situation in an interview with Citi News on Sunday.
He called on the government to ensure it meets its financial commitments to the service providers it hires.
“The games took place in March, and now it’s July. My understanding is that these rates were negotiated well in advance of the games. It’s reasonable to assume that the payments were included in the budget for the African Games, and arrangements should have been made for immediate payment after the games concluded.
“As reported, only 20 percent of the upfront payment has been made, with 80 percent still pending. I’m not sure if more than the 40 reported hotels are affected. It’s possible that other hotels are in the same predicament.
“We need to address this issue because it impacts the industry. I’m uncertain how many of these hotels are Association members, but regardless, any issue affecting hotels impacts the entire industry. We will begin investigations and push for the swift payment of these outstanding debts.
“I want to highlight that this is a recurring issue in the industry. Some hotels have stopped working with public agencies due to similar issues. This isn’t a new problem. It’s an ongoing issue that needs resolution. I hope that with this story coming to light, the agencies will honor their financial obligations to the hotels,” Dr. Ackah-Nyameke stated.
The 13th African Games this year saw the participation of over 13,000 people, including 5,000 athletes, 3,000 technical officials, 3,000 volunteers, and 2,000 guests from 54 African countries. Many of these visitors were accommodated in Accra’s hotels.
The LOC and the Ministry of Youth and Sports had pre-negotiated rates with the hotel operators before the games. More than 40 hoteliers report receiving only a 20 percent upfront payment, with a promise that the remaining 80 percent would be paid immediately after the games.
Despite the games ending on March 23, the Ministry has yet to settle its outstanding debt.
